DAB radio faces threat from satellite rival

DAB radio, the digital radio format promoted by the UK Government, commercial radio sector and BBC, is facing a challenge from a subscription satellite radio which is set to launch throughout Europe.

Ondas Media, a Madrid-based satellite radio group funded by German and Swiss investors, has agreedments to provide its radio devices to car manufacturers including BMW and Nissan. Deals are also expected with Audi, Mazda, Toyota, Honda and Jaguar.

Ondas have also announced a deal to broadcast Britain’s Jazz FM when Ondas’ satellite service launches in 2012. Jazz FM chief executive Richard Wheatly will work with the group to create additional specialist radio channels with tailored content. The satellite radio company is also in talks with the BBC.

Ondas plans to launch with 150 channels in 2012, with devices which will have the capacity for multi-lingual radio, music, video and data services. The devices will be built under licence from Ondas by electronics manufacturers including Bosch, Continental and Delphi. The monthly subscription is expected to be in the region of €10-€12 a month for individuals.

Carmakers have been viewed as vital to making a success of DAB radio, but they have been slow to offer DAB radios in their models, with scepticism about the UK’s commitment to DAB, whether another platform might take its place and whether there will ever be a universal digital standard throughout Europe.

Ondas are also hoping that households and individuals will invest in the technology, which could be available in other devices, including mobile phones and Tom Tom sat nav devices.